Good morning. My name is Joseph, and I will be your conference operator today. At this time, I would like to welcome you to the Blue Owl second quarter 2022 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you'd like to ask a question during this time, simply press Star followed by the number one on your telephone keypad. If you'd like to withdraw your question, again, press Star one. Thank you. Ann Dai, Head of Investor Relations, you may start your conference. Thanks, operator, and good morning to everyone. Joining me today are Doug Ostrover, our Chief Executive Officer, Marc Lipschultz and Michael Rees, our Co-Presidents, and Alan Kirshenbaum, our Chief Financial Officer. I'd like to remind our listeners that remarks made during the call may contain forward-looking statements, which are not a guarantee of future performance or results, and involve a number of risks and uncertainties that are outside the company's control. Actual results may differ materially from those in forward-looking statements as a result of a number of factors, including those described from time to time in Blue Owl Capital's filings with the Securities and Exchange Commission. The company assumes no obligation to update any forward-looking statement. We'd also like to remind everyone that we'll refer to non-GAAP measures on the call, which are reconciled to GAAP figures in our earnings presentation, available on the investor resources section of our website at blueowl.com. This morning, we issued our financial results for the second quarter of 2022 and reported fee-related earnings, or FRE, of $0.14 per share, and distributable earnings, or DE, of $0.13 per share. We also declared a dividend of $0.11 per share, payable on August 29 to shareholders of record as of August 22. During the call today, we'll be referring to the earnings presentation, which we posted to our website this morning. Please have that on hand to follow along. With that, I'd like to turn the call over to Doug. Thank you, Ann, and good morning, everyone. As you can see on slide seven of our earnings presentation, we reported yet another strong quarter of results for Blue Owl. With AUM up 91%, management fees up 63%, and FRE up 52%, all from the second quarter of last year. We continue to experience growth across all verticals, underpinned by secular tailwinds, demand for our differentiated strategies, and expansion of Blue Owl's distribution platforms globally. Our significant permanent capital base, accounting for 92% of our management fees, in conjunction with our 100% FRE-based earnings, create resiliency and stability in our financial profile. Many of you were either in the audience or listening via webcast when we had our Investor Day a couple of months ago. When I think back on the key messages from that day, the business that you heard us describe, is one that really stands out during markets like the one we're seeing now. For those of you that weren't able to tune in for Investor Day, we talked about three key milestones for our business, raising $50 billion of fee-paying AUM across 2022 and 2023, achieving after-tax DE of $1 billion in 2023, and paying $1 dividend per share in 2025. We have always said we're striving to build a different type of alternative asset manager. We wanna give you growth that is better than our peers, but with downside protection and absent the volatility, of carried interest running through our financials. I think you've seen that clearly shown in our results this quarter, and I expect that to play out even more next quarter. We look forward to continuing to demonstrate, the strength of our differentiated model. Our view has always been, that investors should appreciate and ascribe higher value to stable, steady, and growing management fee streams. We are now getting the chance to display that stability, against a volatile and challenging market backdrop for our peers. With that in mind, let me first offer some commentary on the broader market environment, and Blue Owl's positioning before I cover our second quarter results. In a continuation of the trends we saw during the first quarter, inflation, interest rates, and global GDP growth, have remained in the spotlight, driving ongoing public markets volatility. This is exactly the type of environment where we are able to differentiate our business model, and the value of our strategies. At the Blue Owl level, we have patient and permanent capital and resilient management fees, providing underlying support to our existing earnings profile, even as we continue to grow, the layer cake analogy. We anticipate a net positive impact to earnings as rates rise, particularly for our direct lending business, where Part I fees benefit from higher rates. At the strategy level, that same permanent capital allows us to provide flexible, certain financing solutions to sponsors, corporations, and alternative asset managers during a time when liquidity is scarce, and public markets are closed or much more expensive than they used to be. For the investors in our strategies, our products offer attractive qualities in volatile, uncertain markets, income generation, downside protection, and structural inflation hedges. All this to say, we feel very well-positioned to navigate the current market environment. Pipelines remain robust across the business, as we continue to see market share come our way in direct lending despite lower industry M&A volumes. Across our businesses, we believe our scale and capital base create meaningful competitive advantages. This is one of the most favorable environments we've seen for direct lending since our inception seven years ago, and we fully intend to capture the attractive risk-adjusted opportunities we're seeing. Moving on to our second quarter results. We continue to demonstrate steady and robust growth, with management fees growing 14% quarter-over-quarter and 63% year-over-year. Fundraising for the quarter was well diversified, with over $7 billion of capital raised across strategies from both institutional, and private wealth investors. Keep in mind, that's up from $1.2 billion, in the second quarter of 2021. That brings our last twelve months equity capital raise to $17.3 billion for organic growth of 28%. As we mentioned during our recent Investor Day, we launched our new wirehouse distributed tech lending product, ORTIC, during the second quarter, closing on over $700 million through August 1st, primarily driven by one wirehouse in one geography, and we are in the process of expanding the distribution for that product substantially over the coming quarters. This is in addition to the multiple closings we've had for our other tech lending BDC, ORTF II, which has now exceeded $3 billion of equity and which remains in the market. We continue to see good traction for a diversified lending strategy as well. Through August 1st, we have raised an additional $2 billion across direct lending, of which private wealth constituted over half. In GP Capital Solutions, we raised $3 billion for Dyal Fund V during the quarter, and through August 1st, we've raised a subsequent $200 million, to take the fund to approximately $10 billion. We anticipate wrapping up fundraising later this year, which we expect will bring the fund to over $10.5 billion. In real estate, we expect the second half of the year, to be very active as we come to market with new products and next vintages of existing funds. What we hear often from our investors, is that the defensive nature of our strategies and their focus on income generation and principal preservation are highly desirable during good markets, but they stand out even more during challenging environments. We've been active in deployment across all of our strategies, moving us closer to the next big fundraise for each of those strategies. Looking ahead, the key messages that we've highlighted over the past year and most recently at Investor Day, should continue to resound in today's market. We see meaningful runway to raise capital across institutional and wealth channels. In our view, we have the right strategies, the right people, and deep investment expertise in place to invest that capital well. Permanent capital remains the cornerstone of our business, creating competitive advantages and supporting growth. With each successive dollar of new assets raised, we will continue to add new layers to Blue Owl's earnings power. With that, I'd like to turn the call over to Marc to give you an update on our direct lending and real estate businesses. Marc? Great. Thanks so much, Doug. I'd like to pick up where Doug left off in his earlier comments, about the terrific opportunities we're seeing in our direct lending business. We've been able to generate strong growth in that business through very constructive market environments, but these choppy markets are even more advantageous for us to deploy capital and are especially where direct lending strategies shine. As a scaled player in direct lending with patient permanent capital, we are well-positioned to provide much-needed capital solutions at a time when liquidity is scarce. Our market-leading position in tech lending has served us well. We continue to lead a number of large financings for large software firms at attractive spreads and low loan-to-values. Our continued capital formation puts us in a position to lead the biggest deals happening in the market today, such as Zendesk and Amplicore. To use a recent example, we were recently named the admin agent on the senior credit facilities for Hellman & Friedman and Permira's acquisition of Zendesk, a scaled and fast-growing market leader in the customer support service market, for midsize and enterprise customers. Zendesk revenue is highly recurring with attractive retention metrics driven by a strong value proposition and expansion within its existing customer base. Precisely the type of characteristics we look for, when we finance a software company. For the first half of the year, we looked at nearly 50 deals with facility sizes in excess of $1 billion. Exceeding the over 40 investments of that size we evaluated in all of 2021 for the full year. Our pipeline remains very robust as sponsors sit on meaningful dry powder, and continue to find attractive opportunities. We're also having conversations with various non-sponsor private companies looking for financing solutions. This is an excellent market with favorable supply demand characteristics for us. For the second quarter, as you can see on slide 13 of the earnings release, gross originations of $7.6 billion were up nearly 50% year-over-year and over 55% quarter-over-quarter. For the last 12 months, gross originations in direct lending have been $28.9 billion, but more than double what we originated in the prior 12-month period. Although we expect capital markets activity will likely remain under pressure in the near term, we're cautiously optimistic that the back half of this year will remain quite active for our direct lending strategy. Credit quality across our direct lending portfolio remained very strong, and we are proud to say we have not had a single new non-accrual or default in the quarter. Our annualized net realized losses have remained at approximately five basis points since inception, and we continue to focus on downside protection with a weighted average loan-to-value in the low 40s across our direct lending portfolio, and in the low 30s across our tech portfolio. The interest coverage ratio across direct lending is roughly 3.3 times, and we expect that even with a further 200 basis point rate increase, interest coverage will remain above 2.5 times. Our portfolio is very healthy. So far, we've seen great resiliency in the ability for our portfolio companies we finance, pass costs along to their own customers, protecting their businesses from margin compression. Now turning to performance for the 12 months. The direct lending portfolio appreciated 8%, and for the second quarter, while marks were negative due to spread widening and how we value our existing loans as a result, our portfolio continued to fundamentally perform very well. Let me take a second and comment on how we think about mark-to-market. You've heard me say this before, but it does bear repeating. While we care very deeply about the performance of our products, and it very much matters to us and the investors in our funds, for this particular audience, performance, and in particular unrealized mark-to-market, is not really impactful to our shareholders. As you saw during the quarter, there was de minimis impact on our management fees as a result of marks, as evidenced by the management fee growth in direct lending during a period in which public credit markets traded off significantly. Said another way, what we ultimately care about is good credit quality and that we get paid back on our investments, and everything in between is simply noise. Unrealized marks from changes in spreads do not impact the overall performance of our investments or our dividends to our investors. Now, moving on to fundraising. We raised $3 billion in direct lending strategies during the second quarter, of which wealth constituted $1.9 billion. This incorporates $500 million closed for our new tech income fund and ongoing closes for our core income fund. Furthermore, we've experienced very limited tenders in our core income fund. During the second quarter, investors requested tenders for a de minimis $28 million, which compares to 10 billion of AUM in this fund. Subsequent to the end of second quarter, we've closed an additional $2 billion across direct lending. More broadly, we continue to expand the distribution for all of our direct lending products forward. Now moving on to our real estate business. As we spoke about at Investor Day, we believe we are in an attractive investing environment, and continue to see tailwinds for net lease as corporate borrowing costs continue to increase. As we stand here today, we have roughly $1.5 billion in transaction volume under letter of intent, or contract to close and a near-term pipeline of more than $25 billion of potential volume. As of today, we have invested over 55% of the equity in our fifth closed-end fund, putting us on track to launch our real estate fund six later this year. The pipeline for sale-leasebacks is very robust, and the volatility of the markets continues to create opportunities. We've recently picked off approximately $900 million of broken deal flow, at an average cap rate that is meaningfully better than that of the prior potential buyer. We expect to continue capitalizing on similar opportunities in a challenging financing market. In addition, we launched our latest open-ended product, Net Lease Trust. We're currently in one large warehouse with this product today with an expectation to have a first close in the third quarter, and we will continue expanding this synergy. We're very excited about this net lease strategy generally, and believe we have a very differentiated approach. Investors in this strategy will be able to access the advantages of the net lease structure, which targets an attractive 7%+ yield, primarily investment-grade counterparties with beneficial tax attributes. We think this compares favorably to other strategies currently out there. You've heard us say this multiple times now, but I think it bears repeating. Income generation, inflation mitigation, and downside protection, are what investors are looking for in markets such as these, and our net lease strategy provides just that. Since our real estate strategy's inception, we have never had a tenant miss a single rent payment, go bankrupt, or default on a lease. We've generated a net IRR of 26% on average across our fully realized closed-end funds, and growth appreciation across our real estate portfolio of 6.7% for the second quarter alone, and 30.4% for the last twelve months. These are strong risk-adjusted returns for the underlying credit profile of these portfolios. As you can tell, we are quite excited about our track record and strategy given the large opportunity set we see. With that, let me turn it to Michael to discuss GP Capital Solutions. Thank you, Mark. We continue to see a very constructive fundraising and investing environment for our GP Capital Solutions business, particularly given our positioning as an attractive and scaled source of capital for growing private managers. Continued growth across the alternative asset manager space, not only drives our investable opportunity set as more firms seek growth equity, but it also drives cash flow from our partner managers as they continue to raise and deploy capital. As Doug mentioned earlier, during the second quarter, we closed on roughly $3 billion of new commitments for Dyal Fund V, bringing total commitments to $9.8 billion. So far in the third quarter, we've raised an additional $200 million, taking the fund to $10 billion. We are excited about the strong momentum and anticipating wrapping up fundraising later this year, which we expect will bring the fund to over $10.5 billion, exceeding the $9 billion we had on the cover. At $10.5 billion, the size of Fund V will be a record in the GP stakes industry and nearly twice as large as the next competitor. This puts us in a position to continue deploying capital into large firms with leading track records. As we've highlighted at our Investor Day, our market share of deals above $600 million in check size has been approximately 88%. We remained active on the capital deployment front as well, adding two positions in leading firms that are new partner managers, as well as three commitments to firms we have funded previously. As you can see on slide 16 of the earnings presentation, this brings total commitments for Dyal Fund V to $7.4 billion. Having already surpassed Dyal Fund V's target size by $1 billion as of August 1st, and with additional capital expected to close this year, we anticipate the launch of Dyal Fund VI towards the end of 2023, with fees turning on in 2024. Performance across the Dyal funds remains strong, with gross IRR of 31% for Dyal Fund III and 112% for Dyal Fund IV. Looking ahead, we're very optimistic about what the next twelve months holds for the GP Capital Solutions business. Not only is Dyal well-positioned within a very small set of firms that have scale and capability to provide growth capital to fund these managers, but we continue to partner with managers who are the greatest beneficiaries of flows to alternatives and GP consolidation. Overall, we see ample opportunities to take advantage of this dislocation and the current market environment. With that, I will turn things over to Alan to discuss our financial results. Thank you, Michael. Good morning, everyone. I'm going to start off by walking through the numbers for this quarter, and then I'll touch on a few other items I want to cover today. I'll be making references to pages in our earnings presentation as they are mentioned, so please feel free to have that available to follow along. Okay, let's start off by covering our quarterly results. We closed our acquisition of Wellfleet on April 1st, so you will see those numbers included in our results today. Our second quarter was another quarter of strong growth for our business. FRE revenues are up $45.2 million, or 17% from last quarter, and up 51% from the second quarter a year ago. Management fees are up $36.7 million, or 14% from last quarter, and up 63% from the second quarter a year ago. Broken down by divisions, direct lending management fees are up $12 million or 9% from last quarter and 39% from the second quarter a year ago. GP Capital Solutions management fees are up $22.6 million or 21% from last quarter and up 70% from the second quarter a year ago. When you adjust for catch-up fees in Dyal Fund V, we are up $12.8 million. Real estate management fees are up $2.1 million or 12% from last quarter. FRE is up $25.7 million or 15% from last quarter and up 52% from the second quarter a year ago. FRE margins are roughly flat from last quarter at approximately 62%. We expect this will tick down for the second half of this year, due largely to distribution costs we expect to book in the remainder of the year. Our ratio of compensation as a percentage of revenue is roughly flat to last quarter at 27%. We announced a dividend of $0.11 per share for the second quarter, up from $0.10 per share last quarter. All of this is in line with our expectations and what I noted on our earnings call last quarter and in February. We continue to be on track with reaching our 2022 goals of $1.3 billion of revenues and an FRE margin of 60%. I wanted to spend a moment on our fundraising efforts as we put up very large numbers over the past four months. In the second quarter, we raised $7.2 billion, and since quarter end, we have raised an additional $2.2 billion. In total, we have raised $9.4 billion of equity commitments from April 1st through today. I'm going to break down these fundraising numbers across our products so everyone has more transparency here. In direct lending, we raised $5 billion. $1.8 billion was raised for our core income BDC, ORCIC, which is now over $4.5 billion of equity. $1.7 billion was raised for ORTF II, which is now over $3 billion of equity, surpassing the size of ORTF. As a reminder, we earn fees on total assets for these two products, which, including ORTIC, we have now raised approximately $7 billion of equity. With a target leverage, that's approaching $15 billion of total assets for our tech-dedicated products. $700 million in ORTIC, our technology wealth platform product, and $500 million in CLOs. In GP Capital Solutions, we raised $4.2 billion. $3.2 billion was raised for Dyal Fund V, and an additional almost $1 billion of co-invest, which is fee-free. In real estate, we raised $200 million and are in the process of launching two new products, as you heard in more detail from Mark a few minutes ago. As it relates to our AUM metrics, on slide 11, we reported AUM of $119.1 billion, fee-paying AUM of $77.5 billion, and total permanent capital of $95.5 billion. AUM not yet paying fees was $8.8 billion as of June 30th. AUM grew $17.1 billion to $119.1 billion, an increase of 17% from last quarter, and a 91% increase from the second quarter a year ago. Fee paying AUM grew $11.9 billion to $77.5 billion, an 18% increase from last quarter and an 81% increase from the second quarter a year ago. Both metrics driven primarily by deployment of capital and direct lending, capital raised in Dyal Fund V. When looking at the growth from a year ago, the addition of our real estate and CLO businesses. Permanent capital grew $9.9 billion to $95.5 billion, an 11% increase from last quarter, and a 68% increase from the second quarter a year ago, driven primarily by deployment and direct lending, capital raised in Dyal Fund V, as well as the addition of our real estate business when compared to a year ago. AUM not yet paying fees was $8.8 billion, including $6.4 billion in direct lending, $0.8 billion in GP Capital Solutions, and $1.6 billion in real estate. This AUM corresponds to an expected increase in annual management fees totaling over $105 million. As Mark highlighted earlier, we had another strong quarter of deployment in direct lending with gross originations of $7.6 billion and net funded deployment of $4.6 billion. This brings our gross originations for the last 12 months to $28.9 billion with $16 billion of net funded deployment. As it relates to the 6.4 billion of AUM not yet paying fees in direct lending, it would take us less than 2 quarters to fully deploy this based on our average net funded deployment pace over the last 12 months. Turning to our balance sheet, we continue to be in a strong capital position. As you can see on slide 22, we currently have over $1 billion of liquidity with an average 14-year maturity and low 2.9% fixed cost. To wrap up here before getting to Q&A, there's a few last items I want to cover. On distribution costs, last quarter I talked about a large one-time upfront distribution or placement fee expense on certain equity dollars raised. Some of that we closed during 2Q and the rest, the majority of what I was referring to last quarter, will close in the second half of the year. During the second quarter, we had distribution costs elevated by upper single-digit millions versus the first quarter, and the majority of what we expected will now be booked in the second half of the year. On our Investor Day we held in May, we put out some financial milestones we wanted to achieve. These milestones included achieving $1.3 billion of revenues this year, and a 60% FRE margin, as well as milestones for 2023, which included doubling our 2021 revenues to $1.8 billion, hitting $1 billion of after-tax distributable earnings, and raising $50 billion of fee-paying AUM during 2022 and 2023 combined. As I noted earlier, although we're all facing a pretty choppy market environment with strong headwinds, we are on track with our 2022 goals. I'll note here we are also on track with our 2023 goals, including our $50 billion fundraising goal. Of the $50 billion, we have raised $10.5 billion through June 30 and an additional $2.2 billion through today. At the end of June, we were added to the Russell 1000 and 3000. That was a process we had been very focused on being a part of, and we're glad to be included in these indices. Both on last quarter's earnings call as well as at Investor Day, I commented on the rising rate environment we're in and the potential impact that could have on our business. I've included here again on slide 14, the impact of rising rates to our direct lending business. We are expecting to see a lift in our management fee line in the third quarter due to rising rates as well as another possible lift in the fourth quarter. If the Fed continues to raise rates, we would expect continued increases to our management fee line due to an increase in Part I fees across our BDC business. Summing it all up, we are very pleased with our results again this quarter, delivering double-digit growth quarter over quarter in all of our key metrics, AUM, fee paying AUM, FRE revenues, FRE and DE. We are hitting in all of our key metrics and we continue to have very exciting growth plans ahead of us, as outlined during our Investor Day, which we feel we continue to be well positioned to execute on. Thank you again to everyone who has joined us on the call today. With that, operator, can we please open the line for questions? At this time, I would like to remind everyone in order to ask a question, press star and the number one on your telephone keypad. Your first question comes from the line of Alex Blostein. Your line is open. Hey, good morning everybody. Thank you for the question. Maybe we could start with just more details around the retail channel. Obviously it's a huge growth opportunity and a focus for you guys and nice to see traction there. Environment has changed pretty materially, but it doesn't seem like there's been a lot of negative effect on you guys just based on some of the reduction comments that you had earlier in the prepared remarks. I was hoping to get a better sense in terms of How much of the net flows are coming from sort of existing platforms versus maybe some of the newer ones that you've added, just to get a better sense of kind of same-store sales dynamics? You mentioned a lot of numbers, so I was hoping to unpack this a little bit. The $2 billion that you raised so far in direct lending in the third quarter, I just wanted to double-check that that's effectively through early August, and maybe you can give us a sense of sort of the open-ended products versus kind of continued fundraising efforts you have too. Good morning, Alex Blostein. Why don't I have Alan Kirshenbaum start on the $2 billion direct lending piece, and then I can address retail. Thanks, Doug. Good morning, Alex. Yeah, the answer is yes. It's through effectively today, so it includes the August first close, as well as the July first close, for our wealth distributed products. Let me just start by saying in fundraising this quarter, you know, we were really pleased. It was a great quarter. We raised $7.2 billion. I think as Alan mentioned, $3.6 billion of that came from wealth, and that's versus $2.2 billion in the first quarter. I think I have this number right. It's about $1.3 billion has been raised from wealth, quarter to date. Continue to do well. Definitely seeing a little bit of weakness. We're reiterating our $50 billion of fundraising goal for the next, you know, for 2022 and 2023. We mentioned that our tenders have been de minimis, just $28 million in the second quarter out of $10 billion. Over the intermediate and longer term, you know, our views haven't changed. We're confident in our ability to continue to raise capital from wealth. I think, you know, the products we're offering in the channel have attributes that really resonate. Lots of income generation, downside protection, positive leverage to rising rates, especially in direct lending. You know, I think at our last call, we talked about the wealth channel and how allocations to alts remain very low. In Investor Day, you'll remember we put up a number that we thought the wealth channel would control $220 trillion by 2025, and that an incremental 20% of that, could move into the alternative market. That's $40 trillion-$50 trillion. When we talk about wealth, our enthusiasm hasn't waned at all. In fact, we're more excited than ever. We have spent a lot of time building our brand. Our distribution now is truly global, as good as anyone in the market. You know, we've been at this since the day we launched, approximately seven years. I think we're in a really unique position to not only, you know, continue to maintain market share, but to grow market share in that channel, you know, for the next number of years. We just to reiterate, super excited about it, and hopefully Marc mentioned this, you'll start to see that as we roll out our, you know, non-traded REIT. Great. Thanks for all that color. My second question is probably for Alan, around the G&A commentary and the distribution cost. Understanding that that could be pretty lumpy, obviously based on this quarter results and sounds like it, you know, that number is going up next quarter. I guess, A, maybe you could just kind of help us clean up what you actually expect G&A dollars to be for Q3, Q4, just to get some of the noise out of the way. More importantly, as you guys are expanding onto more distribution platforms, can you just kind of help us think about the framework of how holistically distribution costs work for you guys, whether it's a, you know, basis points on retail AUM or some framework around that would be helpful. Yeah, of course, Alex. And thanks for the question. So look, when I think about placement costs for the rest of this year, for Q3, we could expect $20 million-$25 million incremental from our Q1 level. For Q4, we could potentially expect, and look, this is subject, obviously, to what we end up actually fundraising and where fundraising levels end up in Q4, but an additional $15 million-$25 million incremental from Q1. Please don't extrapolate the amount of fundraising that we did in Q2 relative to the placement costs and extrapolate fundraising to Q3 and Q4. The costs vary, and I'll answer your second question in a second. The costs vary quite a bit across different wealth and wirehouse platforms. Just to pull the lens back for a minute, although these, some of these numbers are big numbers for our G&A line, I would pay these costs every day of the week, right? Where I've talked about last quarter, if we raise, let's say, $1 billion as an example, and we pay, let's assume $20 million-$25 million in placement costs for that, and that's blended across, again, different wirehouse and wealth platform costs. That would, over time, equate to roughly $30 million or $40 million of annual management. It effectively, it does pay itself off in one year. To answer your second question, there are some platforms that charge everything up front. There are some platforms that charge, a small amount up front and an annual trail over time. Generally speaking, we could pay 2%-4% either up front or over time, depending on that platform. Got it. Just so I guess close this topic, you know, the elevated distribution costs that you guys can see from placing these products in the back half of the year, is that largely a 2022 dynamic because you're getting a new platform, so you obviously have, you know, OTF two and a couple of other large kind of launches? Or do you think the distribution expense run rate could ultimately be, you know, higher in 2023 as well? Yeah. I think we're gonna continue to ramp up what we're doing across the retail and wealth platform channels, and it certainly could be something that you'll see for the foreseeable short and intermediate term. With that said, keep in mind in my prepared remarks, I commented on where we think we're gonna be in 2022. Our guidance continues to be spot on with where we expect to end the year, right? The $1.3 billion of revenue, 60% FRE margins, which equates to $780 million of FRE. The 2023 goals that we put out there, the milestones that both Doug and I commented on the call in our prepared remarks, we continue to feel very good about those milestones, and we continue to feel that we will achieve those milestones. Everything we just talked about for placement costs, is already embedded in our expectations for 2022 and 2023. There's no new incremental distribution costs here that we see today or in the foreseeable future that would change the guidance we've already given. Wonderful. Very helpful. Thanks so much. Of course. Thank you. Thank you very much, Alex. Your next question comes from the line of Glenn Schorr. Your line is open. Hello. Thanks very much. Question on the direct lending side. I think I got the numbers right. You mentioned 50 deals in the first half over $1 billion versus 40 of all of last year that you've looked at. The question I have is, if you could help peel back the onion of what is it that's driving this higher activity level? Because it's not just you. It seems like that marketplace is expanding. You happen to be great in it. But is it the deal structures that you can provide, the relationships, anything to do with rates, maybe lower capital ratios at banks? Just curious on how you're sourcing them and the big picture drivers there. Thanks. Oh, great. Thanks, Glenn. First of all, definitely want to echo your comment. I think we're great at it. We're seeing a continued market share evolution. Look, at the end of the day, there's a very big marketplace out there for capital solutions, and the direct lending is a minority portion of it and will be a minority portion of it probably for a very long time. That said, there's $2 trillion of dry powder in the hands of private equity firms, and just assuming one turn of leverage, that's $2 trillion of incremental demand for financings. Plus, you got to refinance the trillions of dollars of financing that's already in place in the market. From the point of view of where Blue Owl sits, it's a nearly limitless sort of white space, so to speak. What's happening for us in particular, and as you know, it's not for us alone, the market in total for direct lending has been growing, and it's been growing for, I think, a few reasons. One, of course, has been the expansion of the depth of pools of capital we have to offer. Our relevance to the ever larger financing opportunities has changed over the last, you know, five years. That you can see in those same calculations that 50 deals over $1 billion that we looked at. You go back to, say, 2016, there were zero of that scale that were relevant to that had been done in direct lending. It is an evolution of the depths of capital pools. It's also very importantly, I think most importantly, that we've been able to prove that the model for direct lending, when we started Blue Owl, we really had a view that what we wanted to take was a direct lending business whose legacy had been lender of last resort, for the companies that sort of couldn't get financed elsewhere and turn it into the lender of first choice for the best companies and the best sponsors. That meant creating the value proposition. Today, what we call the Three Ps, right? Predictability, privacy, and partnership. People, I think, have come in many cases, the very best firms, the best companies, to say, "Look, I understand we pay more spread. I understand it's a tougher document, but I really appreciate the value proposition that comes with it." Today, you know, this year, think about this, we at Blue Owl have led Anaplan, $10 billion plus take private. It was announced that we're leading Zendesk, another $10 billion plus take private. Yesterday, you may have seen that Thoma Bravo announced Ping. We're the lead in financing the Ping take private. I think you've just seen this model and its value proposition to these world-class companies, world-class sponsors prove out. Okay. I appreciate all that. Whoever wants to take this one, I'm just curious on what factors we should be looking at or what you're looking at that might indicate closer towards listing of the BDCs. Thanks. Sure. Of course, Glenn. We obviously can't comment on the timing of an IPO with an SEC registrant. I would comment that the ORTF portfolio is fully invested, fully deployed, fully levered. Our shareholders are enjoying a great cash-on-cash return, dividends, IRR. The ORCC three portfolio is fully invested, fully deployed, fully levered. And ORTF, we're just now continuing to ramp. We've now exceeded the size of ORTF, as I mentioned on the call, but we have a long way to go in terms of deploying that capital. Maybe I'll leave it there if that's okay. Sure. If you're not able to comment on just the factors that lead to it, not the timing. In other words, what market conditions might make it more reasonable? Sure. The factors I just mentioned certainly is a large contributor towards the timing. ORCC III is a more recently raised product. But ORTF, you know, we raised in 2018. ORCC, we did about a little less than 3.5 years from the initial close to the IPO. ORTF we raised in 2018, so that's been about four years. The factors, like I said, fully invested, fully deployed, fully levered are certainly a contributing factor. Now we're just looking for a good market environment, which just isn't there right now. Yeah. I'll just make one quick comment. You know, at the end of the day, we wanna give our investors liquidity. They want it, we wanna give it to them, but we're all in agreement that we wanna do it at a time where we feel really good that, when we list it will trade well. We're certainly not in that environment today. There's virtually no IPOs. As you think about the right environment, think about an environment where it's a fairly robust environment to get IPOs done, and I think we will be one of the firms that list and get a good reception. 'Cause it is, as Alan mentioned, it's a mature portfolio doing well. I think when the time is right, I think, you know, our marketplace will find it interesting. Yeah. Another factor, just to add maybe one more component, is you want a really good portfolio to take to market, really pristine from a credit perspective. You really couldn't ask for more with ORTF. We've had no defaults, no one in arrears. Our portfolio has been performing in an incredible way since inception. That is certainly another factor when you think about taking something to the market, that's certainly a material component of how we think about it. Awesome. Thank you for all that. Your next question comes from the line of Patrick Davitt. Your line is open. Hi, good morning, everyone. First question is on kind of the tenor of transaction fees. It looks like your deployment and funding was, you know, more like 4Q 2021, but the transaction fee was meaningfully below the $39 million you reported then. Could you flesh out the dynamics around those kind of disconnects between, you know, deployment and the actual transaction fees that get reported as we think about how it looks going forward? Happy to, Patrick. I've commented on prior calls, you know, sometimes you'll see originations up, transaction fees could be flat, or slightly up, that they're not gonna move in total lockstep. It's really gonna depend on which deals we lead, which deals we participate in. There's a number of factors that go into that. You certainly can see transaction fees up strongly versus Q1. Q1 tends to be a slower quarter seasonally, from a transaction fee perspective. Transaction fees are where we would have generally expected them this quarter. Okay, thanks. I do wanna go back to the distribution discussion again. You guided to $25-$30 million in mid-Q2 placement fees, which I would assume would be a timing you'd have good visibility on that number. What were the dynamics that it made it so much lower than you were expecting? Does that mean that the guidance you just gave for Q3 and Q4 is pretty fluid? When I spoke last quarter, it really was driven by the timing of when we closed the capital. The timing of when we closed the capital, as opposed to part of that coming in Q2, part of that flipped to Q3. What you're seeing is the Q3 guidance I gave. I feel very good about. The Q4 guidance is anticipating a certain level of fundraising that we just can't predict sitting here today. The Q3 numbers I feel very comfortable providing. Got it. Thank you. Of course. Thank you, Patrick. Your next question comes from the live line of Craig Siegenthaler. Your line is open. Hey, good morning, everyone. Hope you're all doing well. Thanks, Craig. Doing great. My question is on the Wellfleet acquisition which closed on April 1st. Do you guys have handy what the management fee and FRE contribution was in the second quarter? As we're forecasting into Q3 and Q4, is this a good run rate to build off of for Q3? We don't take divisions down to the FRE level, Craig, but I can certainly tell you that the revenue contribution to the direct lending business from Wellfleet, was in the mid- to upper-single-digit millions. Yes, you can anticipate that as a run rate going forward. We will grow that business, so certainly we'll look to add to that over the coming quarters as we continue to launch CLOs. That's a good base to start with. Great. Thank you, Alan. Just as my follow-up, I know you hit on retail flows overall earlier in the call, but how have ORCIC's flows trended since June 30? We've done a July one and an August one close. Those numbers have trended down a little bit, not dramatically, but they have trended down a little bit, which would be in line with our expectations. Maybe I would argue better than what we've been seeing in the industry. Great. Thank you, Alan. Take care, everyone. Very welcome. Thank you. Thank you. Your next question comes from the line, Brian McKenna. Your line is open. Great, thanks. Just to follow up on direct lending, there's clearly a significant amount of deployment opportunities across the market, and this is just going to steadily increase over time for a number of reasons that you already touched on. But how are you thinking about the size of your investment team in place today to continue to successfully underwrite deals? What's the expectation for related headcount growth in the business longer term? Thanks for the question, and you hit on a really important point, which is to do this business well. It is a very people-intensive business. That is to say it's a very intensive work exercise, right? We have to do a tremendous amount of investing in origination, to find the thousands and thousands of opportunities that we look at to do the very small number we ultimately do. Deep due diligence, extensive work on credit agreements, which as we've said before, they sound arcane, is a really important part of what we do in terms of protecting capital. You know, this is a business we've had to invest very heavily in building the team. Now we have done that. We have one of the largest dedicated teams in the world to do this. We have, you know, coming up on 100 people, professionals doing direct lending, and that's really what we live and breathe. I think we're very, very well staffed to support the level of activities we have. We'll always be continuing, to look to build our team and make sure we have the best team on the field, and that we're always being proactive in finding the best opportunities. You know, look back to our activity levels in Q4 last year, look at this quarter, you know, we're in very good shape to support the kind of level of activity that we're talking about and seeing. Got it. Helpful. Just broadly, you know, you've done a couple of strategic transactions recently. I'm curious, just given the backdrop more broadly today, are conversations picking up at all for additional M&A? What are some, you know, some of the more interesting areas you would potentially look to expand into inorganically? The pace of activity in those conversations, you know, has picked up as you've said. Now, pace of activity meaning the pace of available opportunities and conversations available to have. You know, we're gonna continue to be extremely selective. Remember, you know, in Oak Street, what we had and have is just a market leader, extraordinary risk-return results, great team, great leader in Marc Zahr. You know, it's and a great culture fit as a result, and we want need all of that to make an acquisition. Wellfleet similarly, not as large, of course, and as strategic, but again, a fantastic team, great culture fit, and a great complement to our core business. We're in the picks and shovels business. We're in the capital solutions business, and so you should, I think, continue to think about us looking for places where we can adopt other solutions that are adjacent. We can be another go-to source of capital, particularly for this private markets ecosystem. We have a foothold in real estate today, and a very strong one at that. It's obviously a very large space that we can continue to explore. We are a very U.S.-centric business collectively today. Obviously, we could explore things outside the U.S. I think you'll continue to see us be very engaged. In a world where the IPO as an alternative managers is no longer a particularly practical idea for most today, I think we will continue to see people who say, "I see an opportunity to grow. I like the benefits of being part of a larger platform." We're gonna continue to engage with those folks and selectively, hopefully add to the platform. Thanks, Marc. Thank you, Brian. Your next question comes from the line of Adam Beatty. Your line is open. Oh, thanks very much. I wanted to ask about the, you know, the vastly kind of increased pipeline in direct lending that you're seeing. You know, it's a multi-year theme. You called it out at the Investor Day of, you know, banks kind of pulling back from some of that. I imagine, given the current environment, you know, that's stepped up a bit. You also mentioned kind of non-sponsor activity being a little bit more prominent. My question is, how sustainable is that, particularly on the non-sponsor side? Would you expect, you know, a little bit of reversion, or is the pie just growing, you know, from here in the future? Thanks. You know, I think obviously time will tell. I think the pie will continue to grow because there's a great value proposition. You know, really at the end of the day, again, we're clear. Our loans, we charge more, and there's no doubt that our documents are more restrictive and rigorous. But we offer people absolute certainty on their capital. They're gonna have the money at the time and place they want it on the terms that they want it. That predictability. Privacy, private equity. You wanna be able to take a long-term view to build these businesses. We're the match to that. We're the private credit. We bring the whole system together and take a view of where you wanna be three years from now to have a bigger and better business. Partnership. You know, when things like the pandemic hit or current uncertainties in the world arise today, knowing you can speak to your partner, the person who owns, in our case, you know, on average, we lend through kind of the low 40% value of an enterprise, and be able to call that person, saying, "Let's talk about the future and, you know, getting from here to there." That's worth it. What I think we're seeing is two things happening in today's market. The continued overall secular trend, which is, hey, that's a great value proposition. Once people try it, many people, great sponsors, great companies, private businesses alike, return to it saying, "That was a really good experience. I'm gonna do that again." That becomes like a step function increase in the marketplace that we work with. There's another thing happening today that we should keep an eye on, which is, look, there is basically no meaningful syndicated market. Today, if you want to make a large acquisition, really direct lending is the primary opportunity, the primary option. There's certainly also a bit of a cyclical element right now in terms of available opportunities to direct lending. You know, it's a combination of both that we're seeing, but the secular trend is the more powerful one. I think as long as we continue to develop pools of capital and deliver the value proposition, that should continue. I will say that, you know, one of the greater challenge from where we sit, and I think where the market will sit is we just don't have enough capital to meet the need. We don't have enough capital to make the loans that frankly, today, we deem very attractive. We're seeing some of the best risk-return opportunities we've seen since inception, and we don't have the capital to meet it, and nor does the industry for that matter. The bigger challenge, I think, gets down to capital allocators deciding and recognizing the opportunity here to have a safe floating rate experience, which is what we offer, and delivering the capital so that we can in turn deliver it through our platforms to these great companies. That's interesting, yeah, about the constraints around capital. Maybe kind of to that point, you talked a little bit about resources around direct lending, you know, in terms of underwriting and diligence and what have you. In terms of distribution, you know, maybe ramping up the capital, gathering even more, where do you see how far along are you in kind of the build-out of that globally? You know, how much more in terms of resources should we expect either to meet your fundraising targets or maybe go a little bit beyond that in the coming years? Thank you. Yeah. This is Doug. Thanks for the question. Look, since the Dyal merger, we've really ramped up our global distribution. You know, one of the things we got really excited about when we merged with Dyal, then with Oak Street, was there was very little overlap between our LP base. In fact, shockingly, like 2%-3%. We are in the very early stages of cross-selling one another's products to each of these LPs. I don't wanna get ahead of myself, but we are having really good success. To answer your question, I'd say we're probably 85% of the way there. There's one or two jurisdictions that, you know, we'll probably add a few people, but from a cost standpoint, I think it's a de minimis cost and, you know, I don't think we'll have any impact on the financials. Great. Very helpful. Thank you, Doug. Thanks, Adam. Your next line comes from the line of Kenneth Worthington. Your line is open. Hi. Good morning. Thanks for squeezing me in here. First, on direct lending credit quality, there seems to be a fair amount of anxiety about credit quality going into the second half or the later half of the year. You seem sanguine about credit today. You highlighted the low LTVs and high coverage, but this anxiety persists. Is investor anxiety misguided? Maybe what are your thoughts here? You know, I think people should be anxious about markets, but not just now. I mean, that is to say, our business, in direct lending is built for exactly this environment. We perform very well during strong times as we have for the past many years. We really shine in times like this. This is what we're built for. Senior secured loans against very large companies, very high quality world-class businesses with world-class sponsors, floating rate exposure. This is really the market we're built for. I wouldn't say the anxiety is misplaced. It's a very uncertain world out there. I would say probably investors should be kind of anxious, but because you're anxious is the reason you go to direct lending. You say, "I wanna be senior secured, I wanna be at the top of the capital structure. I wanna be protected from interest rate changes. I wanna do that with people that do vigorous underwriting, deeply invested in origination, work with the best sponsors, and work with the best companies." I think our particular position in the market for Blue Owl specifically, 'cause that's really our strike zone, which are the best companies, best sponsors. That's really our strike zone. That's a particularly strong place to be. Really important point to note for this audience is while we all, care tremendously about the performance of our portfolio, and presumably, it shows our since inception performance with five basis points annualized loss rates. Remember, for the shareholders, people on this call, it doesn't matter really at all. That is to say we are an entirely fee-based business, right? 100% of our revenues are fee-based. Unlike anybody else in the marketplace where there's carry heavily embedded in their alt structures, we don't have that carry component. We're fee-based. We care a lot about credit quality, and we're, I dare say, one of the best at it. For you all as shareholders, to be clear, it actually doesn't affect the results. Perfect. I apologize if I missed this. What were the catch-up fees this quarter? Catch-up fees were $12.8 million. Okay, awesome. Thank you very much. Thank you, Ken. Again, if you would like to ask a question, press star and the number one on your telephone keypad. Your next question comes from Christoph Kotowski. Your line is open. Yeah, good morning, and thanks. I wonder if you can just give us a bit more color on the handoff from Dyal V to Dyal VI. You know, I think we're all kind of used to the typical private equity structure where you raise a, you know, $X billion fund, and then it gets invested over three, four, five years. Whereas the Dyal fund seemed to be more on a pay-as-you-go, just-in-time kind of fundraising basis. Is that what you anticipate for Dyal VI? And, you know, any idea when you start fundraising for it, and then how much a year comes in? Does it come in a couple of billion a year over four years? Or how is it gonna work? Yeah. Well, thanks for the question. As we look at the business for GP Solutions, Q2 and into Q3 is really highlighting the strategic position, of our business and the Dyal funds. You know, we are seeing increased demand from investors, so our fund size, we were able to increase. We're also seeing a really strong and building pipeline of, you know, continued deals with the biggest and what we believe to be the best players in the space. So we are, at the same time, raising a larger fund, but we're deploying it in real time. So it means that we'll be back out on the road in calendar 2023. We'll have plenty of dry powder to get us into the beginning of 2023, but we will, you know, we'll wanna make sure that Fund VI, that handoff is ready at some point in that calendar year. We expect, you know, the fees to turn on towards the end of the year or very beginning of the following. It's important for us to have ample capital. Our investors like to see, you know, some of the portfolio names and the strength of it as we go, which is why, you know, having this market leading position, we believe we have, partners like CVC and Veritas and HIG and Dragoneer and many others like it, is such a strong position to market from. hope that answered your question, but really proud of the quarter and the way we were able to put the fund five finishing touches on and then start setting our sights on fund six. Chris, I want you to know all of us in the room are really grateful that you asked the question about the GP Solutions business. Because as Michael said, I think there was some skepticism in the market of us hitting our target. We've exceeded it handily, and that fund is doing really well. The investors are thrilled. As you alluded to, I think it's setting us up for a really successful fund six sometime in the not too distant future. Great. That's it for me. Thanks. Thank you. Thank you, Chris. There are no further questions at this time. CEO Doug Ostrover, I turn the call back over to you. Well, I wanna thank everyone for joining us today. Hopefully, you got a sense that our business continues to have really good momentum. Just to reiterate one thing we talked about at Investor Day. We put up a slide at the end with three words: stability, predictability, and growth. I think what this quarter demonstrated is that we have a unique model. We have more permanent capital than any of our peers with best-in-class growth. We're excited for what lays ahead. We're grateful for everyone's support. I hope everyone enjoys the rest of the summer, and hopefully, we'll have a chance to see all of you soon. Thanks again. This concludes today's conference call. You may now disconnect.